Development Bank refutes allegations by the Black Business Leadership Network
The Development Bank of Namibia CEO Martin Inkumbi responded to allegations by the Black Business Leadership Network of Namibia (BBLN), stating that the bank has been and remains responsive to economic challenges faced by entrepreneurs in the country in line with its legal mandate and strategic business objectives.
The BBLN, among others, is accusing the bank of having policies that directly and indirectly affect black business owners and operating as a private commercial bank.
Inkumbi said the BBLN should not allow itself to be used by borrowers who see the movement as an opportunity to avoid loan repayment responsibilities. He added the bank noticed that some businesses that have defaulted years before COVID-19 with collection efforts were already underway are now claiming COVID-19 as the problem.
“BBLN should ideally also advocate good business management practices, and accountability on the part of entrepreneurs, and not demand a blanket cessation of loan collection efforts by lenders. Such demands introduce a new risk factor that lenders now have to consider and discount when lending money,” he said.
He added that the bank will continue negotiating suitable loan repayment arrangements for borrowers affected by depressed business revenue as a result of COVID-19.
At the onset of COVID-19, the bank implemented measures to alleviate the burden of loan repayments, which include: COVID-19 Business Relief loans to qualifying enterprises; loan restructuring for affected clients, loan repayment holidays in the tourism and hospitality sector (which have now been extended through June 2022); loan repayment holidays to all SME borrowers at the advent of the first lockdown, from March 2020 to September 2020; and extended loan repayment holidays to SMEs on the merit of each business case.
Inkumbi stressed that the Bank has not called up any loan for any business enterprise that was in good standing before the arrival of COVID-19. He noted that the bank will continue negotiating suitable loan repayment arrangements for borrowers affected by depressed business revenue as a result of the pandemic.
